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Message from Chairman

Dear Shareholders,

On behalf of the Board, I am pleased to present the results of the Year of the Group.

The overall Hong Kong’s economic growth slowed down in 2018 due to various uncertainties in the global market, including Sino-US trade dispute, United States interest rate hike and Brexit. 2018 was a year full of opportunities and challenges to the Group. Capitalising our outstanding and experienced management team, solid business model, effective risk management and sound corporate reputation, the Group actively captured market opportunities by taking an aggressive yet prudent approach. During the Year, the Group has carried out a series of fitting-out projects for a number of sizeable hotels, casinos, residential properties and commercial buildings, and hence achieving satisfactory results.

During the Year, the Group’s revenue was HK$5,390.8 million (Previous Year: HK$4,982.9 million), profit for the year was HK$381.2 million (Previous Year: HK$421.1 million) and basic earnings per share was HK17.66 cents (Previous Year: HK19.51 cents). The Board is pleased to propose a final dividend of HK5 cents per Share for the Year. Taken together with the interim dividend of HK2 cents per Share, it is equivalent to approximately 39.6% of the profit available for distribution for the Year, which is in line with the dividend policy as stated in the Prospectus.

By providing high-quality service, we work with lots of loyal business partners and can thus maintain our inherent business and enlarge our business step by step. We completed 19 fitting-out projects with the individual contract sum being not less than HK$50.0 million, and 11 alteration and addition and construction projects during the Year. Most of those projects were sizeable hotel guestrooms, casinos, residential properties and commercial buildings.

According to the information from the Statistics and Census Service of the government of Macau, the gambling industry in Macau recorded double-digit growth during the Year. Meanwhile, the completion and launch of the Hong Kong-Zhuhai-Macao Bridge has enabled unprecedented convenience in transportation between the PRC, Hong Kong and Macau. The enhancement of cross-border facilities has brought greater economic benefits, in terms of growth of number of tourists, and development of gambling, retail and tourism industries. In addition, the Greater Bay Area Initiative is a major strategic plan of the PRC development blueprint. Guangdong, Hong Kong and Macau will continuously deepen collaboration, which will further expand, open and develop the economy in regional aspect and form the world’s largest Bay Area economy. Since the launch of Greater Bay Area Initiative, the development of Greater Bay Area has accelerated, and a number of infrastructure and construction projects have been activated. Driven by rigid demand, it is expected that the fitting-out business of Guangdong, Hong Kong and Macau will possess huge growth potential.

During the Year, Caiyun International became our substantial shareholder. By integrating the abundant resources of Caiyun International, the Group will be able to fully facilitate its professional and brand advantages to seize more market opportunities to further expand its business scope and drive the growth in revenue and profits.

Looking ahead, we remain cautiously optimistic over the fitting-out market. The Group will strive to consolidate its leading position in the fitting-out industry in Hong Kong and Macau. Moreover, the strong backup from Caiyun International will enhance the Group’s strength to excel its profession, branding advantages and synergies in architectural decoration in the PRC. We aim at flexibly synchronising our businesses in Hong Kong, Macau and the PRC to achieve resource sharing and edge complementing, and hence, enhancing our brand to create a one-stop chain in the construction industry.

On behalf of the Board, I would like to take this opportunity to express my sincere gratitude and thank to our Shareholders, business partners and other professional parties for their unremitting efforts and support in this competitive market. We will carry on dedicating our efforts towards the long-term development and hence deliver sustainable returns to our Shareholders.

Liu Zaiwang